Examveda
Examveda

Formula such as net income available for common stockholders divided by total assets is used to calculate

A. return on total assets

B. return on total equity

C. return on debt

D. return on sales

Answer: Option A

Solution(By Examveda Team)

Formula such as net income available for common stockholders divided by total assets is used to calculate return on total assets. The ratio is considered to be an indicator of how effectively a company is using its assets to generate earnings.

This Question Belongs to Commerce >> Financial Management

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